Raytheon Company : The share is well oriented
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07/30/2012 | 09:07am
Opinion : Bullish above 54.2 USD
Target price : 60 USD
Stop loss: 54.1 USD
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NYSE
Aerospace / Defense |
Raytheon is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 90 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. Raytheon could exceed the symbolic threshold of USD 56.9.
The company has strong fundamentals. It has a 10.7x PER for FY2012. Analysts polled by Thomson-Reuters have regularly upgraded their earnings per share estimates. Therefore, the consensus expects an increase in profitability and also shows the financial health of Raytheon. Finally, yield is estimated at 3.50%.
The security is in an upward trend for several months. A running out of steam is occured with the contact of USD 56.8 which is the highest recorded by this share. The security rebounded on its USD 54.2 support. Exceeding the resistance will indicate a bullish signal with a target price in the area of USD 60.
Given these elements, most active investors could take a buy position and aim to cross the USD 56.8 resistance for a new bullish signal. A stop loss is placed below the USD 54.2 short term support, threshold that would invalidate the bullish strategy.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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12,3x |
12,0x |
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Capitalization / Revenue
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0,92x |
0,95x |
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EV / Revenue
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0,96x |
0,99x |
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EV / EBITDA
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7,21x |
7,18x |
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Yield (DPS / Price)
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3,24% |
3,56% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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11,6% |
12,0% |
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operating laverage (Delta EBIT / Delta Sales)
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-2,26x |
- |
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Net Margin (Net Profit / Revenue)
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7,52% |
7,75% |
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ROA (Net Profit / Asset)
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6,52% |
6,59% |
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ROE (Net Profit / Equities)
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21,0% |
19,9% |
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Rate of Dividend
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39,8% |
42,7% |
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